May 7, 2021

Pricing again pushed up against record highs for houses sold in Sioux Falls in April as inventory continues to struggle.

The median price of a house sold in April was $254,000, a 10.5 percent increase compared with the same time last year, according to the Realtor Association of the Sioux Empire.

The average sales price was $283,341, a 7.4 percent increase.

“The busy spring market continues to see many multiple offer situations driving sales prices above asking price,” the report said.

“With such strong activity, by the time a property sale closes, the market may have already moved higher than that sold price suggests. Such markets can create stress and frustration for prospective homebuyers, who are frequently having to submit offers on multiple properties before they are able to secure a purchase.”

The average seller received more than list price at 101.1 percent.

“While housing affordability remains an area to watch as prices continue to rise, strong buyer demand and limited housing supply show no signs of easing soon, pointing to a continuation of this market trend through spring and into summer,” the report said.

There were 396 houses listed in Sioux Falls in April, down 3.4 percent. Closed sales dropped 8.8 percent.

The market ended the month with a 1.9-month supply of inventory, which is half of what it was last year at the same time.

The average house spent 76 days on the market before selling, which is 12 days less than last year.

For the 12-month period spanning May 2020 through April 2021, pending sales in the Sioux Falls region were up 20 percent overall.

The price range with the largest gain in sales was $700,000 to $800,000, which increased 89 percent.

“Strong buyer demand and limited housing supply show no signs of easing soon, pointing to a continuation of this market trend through spring and into summer,” the report said.